Single Touch Payroll will become mandatory on July 1st this year for employers with a head count of 20 or more staff including casuals on 1st April 2018.
It becomes mandatory for all other businesses on July 1 2019.
Single Touch Payroll is a way of communicating gross wages, tax withheld and super for your employees directly to the ATO immediately after each pay run has occurred.
What this means is that you will need to use a payroll or accounting software that can talk directly to the ATO.
In most instances desktop (or non cloud) softwares will not comply and you will need to upgrade to a compliant (cloud based program).
There will be some exceptions to this rule and your current software provider can give you more information.